Frontline Ltd. (FRO)

[Airelon]

I think we all have look at those stocks and think "Man, if I woulda bought when ..."

FRO has been one of those stocks for me, however, it's been one that I did buy (Original price I bought in was around $31). A shipping ownership-parent company, headed up by John Fredriksen. Had a nice runup to around $50, and even after all that noise, they are still flirting with the mid $40's. And on the ride, $6.00 annually per share, $1.50 was the latest payout.

I'm not sure what it is about this company, but I've loved every move they've made. I enjoy owning FRO more than my GOOG from 402 / 404 region. I bought some more of it a week or so ago, just a bit, as I wasn't sure where the true bottom was going to be, but I wanted to take advantage of the bargain price while it lasts. Depending on what happens the 19th, I'll be looking to grab up some more.

[Fredledingue]

Their numbers are incredible. The dividend is very atractive.
Now I'm not sure if oil tankers are thing of the future. Seems a small-growth business to me hence the low P/E and high divy.
Their business may not grow as much as the global oil demand:
-Increase in pipelines capacity (Turkey will open the new Baku-Ceyhan pipeline, some projects of pipelines between Iraq and Israel, between India and Iran etc).
-Increase of oil exploitation in the Artics. Ironiacly the global warming caused by the use of fossile fuels is melting the ice cap, which wioll allow even more extraction of those fossile fuels.
Russia, Norway and Canada are already claiming for the Artic's seabed.
This is something you want to consider if you plan to hold long term. In the short or mid term there is little impact since these projects are evry slow. It can be a relatively safe play for a period of 6 months to 1 years and half.

[Airelon]

Thing is, they are a small company in terms of employees, (48 employees) That is, FRO. And small in regards to what FRO does. But they are a parent company that basically manages all their other interests, as well as a few tankers, and they have thankfully grown into one of the largest Tanker companies in the world in terms of ownership and revenue.



A couple of people told me I was nuts when I first bought it, and told me they wouldn't last with the dividends they were paying. But that's been their whole strategy of attracting shareholders. Crank up, and pay consistent dividends.

Been a dream stock.

[Airelon]

Oh, on the time thing. This has been in my portfolio for over a year now, and I plan on carrying it for much longer. Possibly 3 or 4. Maybe more. Time will tell.

[derrekmay]

Originally Posted by Airelon

Oh, on the time thing. This has been in my portfolio for over a year now, and I plan on carrying it for much longer. Possibly 3 or 4. Maybe more. Time will tell.

Do you mean 3 or 4 months, years?

[Fredledingue]

Originally Posted by derrekmay

Do you mean 3 or 4 months, years?

If he said "I'v been holding for over a year", I think he means years.

FRO can be a great investment/trade right now but I noticed that marine stocks behave weirdly sometimes. Ultra low valuations or rising 50% in a few days followed by a dead flat charts for months, falling abruptly for no distinct reason then recovering later for even less visible reason...

[Airelon]

Yeah, Fred is right, 3 or 4 years. In OSLO, Frontline is trading at 266, and we're up to 49 here at home now.

[Airelon]

CHA-CHING!!!!


* * *



Published: 16:24 02.10.2007 GMT+2 /HUGIN /Source: Frontline Ltd /OSE:
FRO /ISIN: BMG3682E1277

FRO - Extraordinary dividend

As announced earlier today, Frontline Ltd. ("the "Company" or
"Frontline") has on Tuesday October 2, 2007 sold its entire holding of
34,976,500 shares in Dockwise Ltd. ("Dockwise"). The shares were sold
at a gross price of NOK 25 per share, with net proceeds of
approximately $157 million. Frontline is expected to record a gain of
approximately $49 million in the fourth quarter of 2007 as a result of
this sale. In the second quarter of 2007, Frontline recorded a gain on
the issuance of shares by Dockwise of $43.7 million.

Instead of keeping these funds until the payment of the ordinary
dividend payment for third quarter of 2007, the Board has in a meeting
on October 2, 2007, decided to declare an interim extraordinary
dividend of $1.75 per share resulting from the cash generated from the
sale of the Dockwise shares. This interim dividend will in combination
with the relative weak spot market in third quarter reduce the normal
dividend for third quarter of 2007.

The record date for the dividend is October 12, 2007, ex dividend date
is October 10, 2007 and the dividend will be paid on or about October
24, 2007.

October 2, 2007
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda



God bless this company. LOL They make money? Their number one priority is to reward the shareholders. It's in their financial outlook reports they send out. Number one strategy is to attract shareholders by paying consistent high dividend rates. And by god, over the last 2 years that's just what they've done.

Gotta love this business.